1. DISTINGUISH BETWEEN ECONOMIES OF SCALE AND DISECONOMIES OF SCALE
2. TRUE OR FALSE. A PRODUCER CAN OPERATE IN THE SITUATION IN WHICH PRICE IS LESS THAN AVERAGE VARIABLE COST.
3. WHAT FOUR BASIC CONDITIONS CHARACTERIZE A COMPETITIVE MARKET?
4. WHAT IS ECONOMIC PROFIT? CAN A FIRM IN A COMPETITIVE INDUSTRY EARN ECONOMIC PROFIT?
5. If a firm has created value, is it also always able to capture that value? How does a firm create value and then what must it be able to do to capture that value? In your answer, provide an example of a firm that has been able to create value. Then discuss whether or not you believe it has captured that value and if so how it was captured and if not why it was not able to do so.